Even business loans can accumulate rather than improve the financial condition of a company if one is not careful. In 1997, many companies who borrowed money in dollars ended up paying twice as much and, as a result, many of these enterprises went bankrupt.

Losing money is bad enough. But losing money with the added obligation of paying a debt plus interest is worse.

Needs vs wants

The availability of various debt facilities like credit cards, installment plans, etc. fuels the temptation to spend on things that we cannot afford. More so on things we actually do not need!

Debt can keep you from achieving your financial goals, it can give you sleepless nights and other health problems, it can even also ruin relationships and marriages.

In reality, however, even if we try to save and budget, unexpected business or personal emergencies can force us into debt. When this happens, it is best to consult a debt counselor or a financial adviser who can suggest specific ways and means on how this financial burden can be eased or eliminated.

Another point is, when we borrow money, it comes with interest. In most cases when these loans do not come from legitimate institutions, they come together with rates that are ridiculously high. Pinapayaman lang natin yung mga nagpapahiram ng pera!